The Term Deposit Guarantee is a critical financial instrument used in Canadian banking and investment transactions where additional security is required for term deposit arrangements. This document is typically employed when a third party needs to guarantee a term deposit, whether for commercial purposes, corporate treasury management, or structured financial arrangements. The agreement must comply with Canadian federal banking regulations, including the Bank Act and CDIC requirements, as well as applicable provincial legislation. It contains detailed provisions for the guarantee's scope, triggering events, payment mechanisms, and the rights and obligations of all parties involved. The document is particularly relevant in scenarios involving corporate group structures, financial institution requirements for additional security, or when enhanced protection is needed beyond standard deposit insurance limits.

1. Parties: Identifies and defines all parties to the agreement: the Guarantor, the Financial Institution, and the Depositor

2. Background: Explains the context of the guarantee, including the underlying term deposit arrangement

3. Definitions: Defines key terms used throughout the agreement, including 'Term Deposit', 'Guarantee Amount', 'Maturity Date', etc.

4. Scope of Guarantee: Details the extent and limitations of the guarantee, including the maximum amount covered

5. Term and Duration: Specifies the effective period of the guarantee, including start date and conditions for termination

6. Guarantor's Obligations: Outlines the specific obligations and commitments of the guarantor

7. Conditions Precedent: Lists any conditions that must be met before the guarantee becomes effective

8. Representations and Warranties: Contains statements of fact and promises made by the guarantor regarding their capacity and authority

9. Payment Terms: Describes the process and timing for guarantee payments if triggered

10. Default Events: Defines circumstances that constitute a default and trigger the guarantee

11. Notice Requirements: Specifies how and when notices must be given between parties

12. Governing Law and Jurisdiction: Establishes the applicable law and courts for dispute resolution

13. General Provisions: Contains standard boilerplate clauses including amendments, assignment, and severability